VCE Summer Internship Program 2020
Smart Task 03
Project Topic : Project Finance - Modeling and Analysis
Since you finished and submitted M1 and M2 (with ST01 and ST02), hence we expect
that you should and must have basic knowledge, understanding with concept on
following;
A. Definition and Concept of basic terms ( IRR, NPV, PV, DRCR, DSR, DCF, Equity,
Debt, Debt Repayment, Inflation, Amortization, Depreciation, Cost, Revenue etc)
B. Project Finance, Conditions, Concepts, and Applications.
C. Preparation of Basic Financial Model and related Calculations.
Instructions
In this module, you are supposed to understand the revenue model and process flow of
different types of ventures which are qualified in project finance. Some of them are;
1) Power Sector (Coal, Gas, Solar and Wind Power Plant Project).
2) Infrastructure (Residential and Commercial Buildings).
3) Public Utilities (Airport, Road, Highways etc.)
4) Manufacturing Sector.
You need to understand the revenue model, capital and operating cost for all these
sectors.
1. How a new venture is assessed to qualify as project finance. What are the
factors that needed to be considered?
2. Explain in detail the revenue model for Solar PV Project, Residential
Building, Manufacturing Unit and other PPP projects.
Task
3. What should be the additional points that needed to be included in a
financial model, if the financing bank is from abroad and the debt is in US$
but revenue is in INR.
Suggested Learning References
1. [Link]
2. [Link]
3. [Link]
4. [Link]
7pIN
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